Isle of Man Trust Formation |
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The Isle of Man has a statutory body called the Financial Supervision Commission (FSC). The FSC is an independent body whose functions include i) the regulation and supervision of persons undertaking regulated activities, which includes trust formation, ii) management of the regulatory regime for the regulated activities, iii) oversight of persons responsible for management, or affairs, of commercial entities. Further information can be found on the Isle of Man FSC website. |
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As a company incorporation specialist, Healy Consultants utilizes international experience along with a broad network of business associates to assist entrepreneurs fulfill their Isle of Man objectives. |
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| Advantages of Isle of Man Trust Formation | |
| 1. | Isle of Man Trust law is closely modeled on English Trust law. |
| 2. | The Isle of Man has a mature legal system and financial framework to support Trust formation. |
| 3. | Isle of Man Trust income is tax-free if the Beneficiaries are resident outside the Isle of Man and if the income is sourced outside the Isle of Man. |
| 4. | Isle of Man Trusts are supported by a sophisticated financial services industry on the island. |
| 5. | There is no capital gains tax and no inheritance, gift or estate taxes in the Isle of Man. |
| Disadvantages of Isle of Man Trust Formation | |
| 1. | The Isle of Man still has a Rule against Perpetuities, requiring beneficiaries to be identified, at least by class. |
| 2. | Isle of Man Trustees may be obliged to file tax returns when they are resident in the Isle of Man. Isle of Man Trusts with Beneficiaries resident in the Isle of Man are subject to income tax of 18% on undistributed income. |
| Types of Isle of Man Trust Formation | |
| Discretionary Trust | |
| This type of Trust is where the trustees decide how income and capital of the Trust assets is applied for the Beneficiaries' benefit. The Settlor can give guidance as to how he would like the Trustees to exercise its discretion, but cannot control them. | |
| Life Interest or Interest in Possession Trust | |
| A Trust where the income of the Trust assets automatically belongs to specified Beneficiaries. | |
| Purpose Trust | |
| This type of Trust is designed to fund a specific purpose. An independent 'enforcer' must be appointed to ensure that the trustees fulfil their duties. These trusts are subject to rules concerning perpetuities. | |
| Charitable Trust | |
| This type of Trust is designed for charitable purposes. | |
| Contact Us | |
| For more information on Isle of Man, email email@healyconsultants.com or telephone us at (+65) 6735 0120. | |
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